Archives of “swing trade” tag

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A Trader’s 5 Best Teachers

  
  Education
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Trading Losses: There are two types of losses, one loss is caused by the market simply not being conducive for the profitability of your system. The other loss is due to your lack of discipline causing your system not to work. If you followed your trading plan and had a loss that is to be expected. If you are trading a proven and tested method then you have simply learned that taking a loss is simply part of trading. However if your breach of discipline caused your loss, whether not taking a stop, over riding your plan, not taking an entry, trading too big, etc. then it is time to learn why you had the loss. Ego? Fear? Greed? Overconfidence? Laziness? and many other things cause losses. It is crucial that you learn why you broke your trading plan so you do not repeat the mistake again.

Charts: Studying the past price action of charts is very educational. It will show you how prices have reacted at  support/resistance levels in the past along with moving averages and any other indicators that you may choose. It is important that you understand how your market has historically traded whether it is currencies, commodities, stocks, or bonds. It is crucial that you learn how to identify a trend, a swing trade, and a range bound market. (more…)

Rules of Trade

  
  Education
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Never Mix Disciplines.  If you day trade then day trade and do not let a day trade turn into a swing trade.  If you swing trade do not let your swing trade turn into an investment. Follow the rules based on the discipline of your time frame.

  Never Try To Trade Back A loser.  In other words, each trade is a new one and should not be used to win back money lost in the last trade.  Always trade in the present not in the past where too many emotional and psychology factors can affect the current trade.  Revenge does not pay in or out of the market. 

4 Rules for Traders

  
  Education
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1. Average Winners Not Losers.  It is not “don’t frown, average down”; it is applying the discipline to cut losers short and adding to winners that separates the successful from the unsuccessful.  If you have a winning stock then add to it.  If you have a losing stock then get rid of it. 

2.  Never Let a Winner Turn Into A Loser.  Greed is the cause of this mistake.  Let the market tell you when to exit a trade, not whether you have a profit or not.  “If your trade is acting well, as defined by key indicators, and the market activity is supporting your position, stay in.  If not, its go time!” Do not let a good profit vanish into thin air because you want more than the market is willing to give.

3. Never Mix Disciplines.  If you day trade then day trade and do not let a day trade turn into a swing trade.  If you swing trade do not let your swing trade turn into an investment. Follow the rules based on the discipline of your time frame.

4.  Never Try To Trade Back A loser.  In other words, each trade is a new one and should not be used to win back money lost in the last trade.  Always trade in the present not in the past where too many emotional and psychology factors can affect the current trade.  Revenge does not pay in or out of the market. 

8 MISTAKES GREAT TRADERS NEVER MAKE

  
  Education
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  1. Try to close a position but accidentally DOUBLE it instead.
  2. Put a swing trade on and realize AFTER the close that earnings are coming soon. Like the next morning.  Before the market opens.
  3. Buy the CALLS in a stock that is breaking out at what they think is a bargain price, only to find out later that they actually bought the PUTS.
  4. Constantly drive by their ex girlfriend’s house to see if she is dating that idiot biker guy with the tats who will never love her the way they would….
  5. Knock off early for the day to go rollerblading, sure that they put a hard stop in on their position before they left (but didn’t).
  6. Continuously hit the “submit” button on their trading platform when their order “hangs up” only to find out that they bought their position eight times.
  7. Listen to the whole “Best of WHAM” album online, unaware that Spotify is auto-posting that info to their Facebook timeline.
  8. Think they have a “one cancels other” limit and stop in place and take a long lunch after their position hits it’s profit target.  Then come back later in the day only to learn that price reversed, hit their stop (making them net short), and then rallied.

4 More Rules to Trade

  
  Education
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1. Average Winners Not Losers.  It is not “don’t frown, average down”; it is applying the discipline to cut losers short and adding to winners that separates the successful from the unsuccessful.  If you have a winning stock then add to it.  If you have a losing stock then get rid of it. 

2.  Never Let a Winner Turn Into A Loser.  Greed is the cause of this mistake.  Let the market tell you when to exit a trade, not whether you have a profit or not.  “If your trade is acting well, as defined by key indicators, and the market activity is supporting your position, stay in.  If not, its go time!” Do not let a good profit vanish into thin air because you want more than the market is willing to give.

3. Never Mix Disciplines.  If you day trade then day trade and do not let a day trade turn into a swing trade.  If you swing trade do not let your swing trade turn into an investment. Follow the rules based on the discipline of your time frame.

4.  Never Try To Trade Back A loser.  In other words, each trade is a new one and should not be used to win back money lost in the last trade.  Always trade in the present not in the past where too many emotional and psychology factors can affect the current trade.  Revenge does not pay in or out of the market. 

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